Abstract

Blockchain is in the hype cycle that accompanies new, promising technologies. Until it matures, there will be a tendency to use the blockchain hammer for any inconvenient nail in insurance.

This report avoids sensationalism and offers a practical, insurance-specific perspective to advance understanding about what is possible when it comes to the blockchain.

Its objective is to inform insurance business leaders on the opportunities presented with blockchain technology. It defines key design concepts, details specific use cases, and provides an update on activity in the insurance industry.

“Insurers are beginning to investigate the application of blockchain in insurance,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and coauthor of the report. “A few have begun co-development efforts, and some are investing in blockchain startups. Celent encourages insurers to allocate resources to understand the implication of the technology on their firm and also to monitor developments.”

“Developing use cases, experimenting with cryptoapplications, and building relationships with Fintech firms are excellent beginning steps for insurers to take at this point,” says Jamie Macgregor, senior vice president of Celent’s Insurance practice and coauthor of the report.